Understanding Commercial Costs: Factors and Considerations 

Peter Mackman Walnie

Business

 

The cost to air a commercial differs by TV channel, time, specific program, and more. For example, ads aired during certain times of the year might cost less than ads aired at prime times, like during school breaks or similar high-traffic times. 

There are other factors that also play a role in the cost of airing a commercial. Below, we address the commonly asked question, “How much does a commercial cost?” to help business owners and managers better understand the true cost of this traditional advertising form.

Factors That Determine the Cost of TV Ads: Making the Commercial

Though it is now possible to create a TV commercial with artificial intelligence alone, it’s likely it will not prove as effective as a human-made ad. It takes people, equipment, and software to make and edit a TV commercial. 

From the set used for filming to special effects, post-production editing, microphones, and more, there is plenty to purchase before airing the ad. 

Commercial Costs Differ by Network

A TV commercial placed on a local PBS show will be significantly cheaper than one that airs on a nationwide channel such as the NFL Network. Moreover, time spent on local and regional channels is more affordable than time spent on national channels. 

Add in the fact that airing an ad on a national network during the prime time hours of 6:30 pm to 10 pm is even costlier and there is that much more reason to consider local and regional ads. 

Frequency of Airing

The number of airings also plays a role in determining the cost of the commercial. A TV spot that airs once on local TV can cost significantly less than other placements. 

In contrast, a TV commercial that airs on a national network several times over has the potential to cost half a million dollars or more, especially if it airs during a nationwide event such as the NBA Finals.

Scripts and Storyboarding

Commercials center on their content, which consists of scripts, storyboards, and an overarching concept. It takes writers and editors to create a compelling TV commercial script. 

Moreover, talented actors and voiceover specialists are necessary to bring exemplary writing to life. Writers, editors, and actors require payment for their contributions to the commercial-making process, so be sure to factor that in before starting.

The Length of the Spot

Contrary to popular belief, it is possible to pay as little as a couple hundred dollars to air a commercial. However, if you want to air a spot beyond 15 to 30 seconds in length on a regional or nationwide network, you’ll have to pay thousands, tens of thousands, or even hundreds of thousands of dollars. 

Commercials are typically in the range of 15 to 30 seconds — though 60 and 120-second spots are also available. Infomercials, meaning those more than two minutes in length, are no longer as popular as they were in previous decades. However, if desired, it is possible to purchase infomercials upwards of half an hour or longer in length, especially during the morning, early afternoon, and late night time slots.

In general, the typical 30-second TV commercial ranges from a couple thousand dollars to $50,000+. However, the channel, program, and airtime all play a role in determining the cost of the ad. The competitiveness of the market and ad space can also cause the cost to vary. 

Cable, Broadcast, and Streaming Commercials

The cost to advertise on local/regional broadcast TV and streaming video through the web is almost always cheaper than that of nationwide cable TV. If you want to air a local spot on NBC, CBS, or another broadcast channel available through an antenna, you’ll likely shell out a couple thousand dollars or less. 

Commercials placed on cable TV or broadcast TV channels during nationwide broadcasts such as Sunday or Monday Night Football are likely to cost much more than airing a commercial on TBS, TNT, USA, or another cable TV channel in the middle of the day will likely cost a sum of money in between the extremes of local broadcast TV spots and nationwide spots that air during coveted primetime hours.

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